Mumbai: Sterling and Wilson Renewable Energy reported a mixed financial performance for the first quarter of FY27, with consolidated net profit rising sharply despite a decline in revenue and operating earnings. The company’s shares fell sharply after the announcement, slipping nearly 9 per cent during Thursday’s trading session.
The renewable energy engineering, procurement and construction (EPC) company reported a 69.4 per cent year-on-year increase in net profit to Rs 54.2 crore for the April-June quarter, compared with Rs 32 crore in the corresponding period of the previous financial year.
Profit rises despite lower revenue
Sterling and Wilson‘s revenue from operations declined 9.7 per cent year-on-year to Rs 1,590 crore in the June quarter of FY27, down from Rs 1,762 crore recorded in the same quarter last year.
While the topline moderated, the company managed to post a significant increase in net profit, reflecting improved profitability during the reporting period.
EBITDA declines, margin improves slightly
At the operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) fell 8 per cent year-on-year to Rs 78.6 crore, compared with Rs 85.4 crore in the year-ago quarter.
However, the EBITDA margin improved marginally to 4.9 per cent, compared with 4.8 per cent in the corresponding quarter of FY26, indicating slightly better operational efficiency despite lower revenue.
Order book reaches post-pandemic high
The company highlighted a strong order pipeline, with its Unexecuted Order Value (UOV) reaching nearly Rs 13,000 crore, the highest level since the Covid-19 period.
The sizeable order book provides strong visibility for future revenue growth and reflects sustained demand for the company’s renewable energy EPC services across domestic and international markets.
Major international project in Egypt
During the quarter, Sterling and Wilson secured a significant international order through a 50:50 joint venture with a leading contractor in Egypt and the Middle East and North Africa (MENA) region.
The contract, valued at approximately $560 million, is for the West Minya Solar Power Project in Egypt’s Minya Governorate.
The project involves the construction of a 1,000 MW-AC solar photovoltaic plant integrated with a 600 MWh battery energy storage system, making it one of Egypt’s largest utility-scale renewable energy projects upon completion.
The order is expected to strengthen the company’s international portfolio and contribute to future revenue growth.
Domestic EPC business remains strong
Sterling and Wilson said its domestic EPC business continued to perform well during the quarter.
The company reported a domestic order book of around Rs 7,900 crore, providing healthy revenue visibility while maintaining stable gross margins of around 9-10 per cent.
Management believes the strong domestic pipeline will continue to support business growth in the coming quarters.
Management optimistic about growth
Commenting on the quarterly performance, Chandra Kishore Thakur, Global CEO of Sterling and Wilson Renewable Energy Group, said the company remains confident about its growth prospects due to its robust order book.
He said the strong unexecuted order value is expected to translate into improved revenue and profitability in the coming months.
According to Thakur, the expanding order pipeline reflects customer confidence in the company’s capabilities, while its experienced workforce is well positioned to execute projects within committed timelines.
Shares fall after results
Despite the sharp increase in profit, investors reacted cautiously to the quarterly results.
Sterling and Wilson Renewable Energy shares declined as much as 8.76 per cent to an intraday low of Rs 218.65 on Thursday.
At around 2 pm, the stock was trading near its day’s low at Rs 221.60, down 7.53 per cent, even as the BSE Sensex traded 0.16 per cent higher at around 77,309.
The decline suggests that investors focused on the fall in revenue and operating earnings despite the company’s improving profitability and strong future order pipeline.